Stocks to buy amid India-Pakistan tensions: CG Power, KEI Industries, BoB could give 18-25% return
Following India's precision strikes on terror hubs, the market experienced an initial dip, with the Sensex falling. Experts suggest the market impact will depend on the opposing side's response, considering the strikes' focused nature. Brokerages recommend strategic investment during this dip, highlighting opportunities in Bank of Baroda, KEI Industries, and CG Power.
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We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Nomura on Bank of Baroda: Maintain Buy rating with target price of Rs 265| LTP Rs 223| Upside 18%
Nuvama on KEI Industries: Maintain Buy rating with a target price of Rs 4,010| LTP Rs 3193| Upside 25%
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Emkay Global on CG Power: Buy| Target Rs 765| LTP Rs 597| Upside 28%
Indian market witnessed a knee jerk reaction on Wednesday after the Indian Army, Navy, and Air Force launched joint precision strikes on 9 terror hubs in Pakistan and PoK.The BSE Sensex fell more than 200 points in the first 15 minutes of trade while the Nifty50 managed to hold on to 24,300 levels.From a market perspective, what makes 'Operation Sindoor' noteworthy is its focused and non-escalatory nature, suggest experts.Because the possibility of a retaliatory strike by India was already expected and priced in by investors. Going forward, market sentiment will depend on how the opposing side chooses to respond to these strikes."What stands out in ' Operation Sindoor ' from the market perspective is its focused and non-escalatory nature,' Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.'We have to wait and watch how the enemy reacts to these precision strikes by India. The market is unlikely to be impacted by the retaliatory strike by India since that was known and discounted by the market,' he added.Investors should approach the current market dip strategically rather than reactively. Use the dip as an opportunity to rebalance—trim exposure to overvalued segments and add to underperforming but fundamentally sound areas.Nomura has maintained a Buy rating on Bank of Baroda , setting a target price of Rs 265, implying an upside of 18% from the current market price of Rs 223. The brokerage noted that the bank had a weak quarter, primarily due to disappointing net interest margins (NIMs).However, loan and deposit growth remained healthy, rising 5.1% quarter-on-quarter. Nomura believes that the higher growth in lower-yielding segments, such as corporate and home loans, likely contributed to the decline in margins.Looking ahead, it expects NIMs to remain under pressure, with the impact of repo rate cuts becoming more pronounced from the first quarter of FY26.Nuvama has maintained a Buy rating on KEI Industries , with a target price of Rs 4,010, indicating an upside potential of 25% from the current market price of Rs 3,193.The brokerage highlighted that the company has shown significant outperformance compared to its cables and wires (C&W) peers. Given this strong growth trajectory, Nuvama expects a sharp recovery in the stock moving forward.Emkay Global has reiterated a Buy rating on CG Power & Industrial Solutions, with an unchanged target price of Rs 765, implying a potential upside of 28% from the current market price of Rs 597.The brokerage noted that Q4FY25 results were broadly mixed, with revenue in line with expectations, although profit after tax (PAT) showed a marginal miss. On a consolidated basis, revenue, EBITDA, and PAT grew 26%, 28%, and 23% year-on-year, reaching Rs 27.5 billion, Rs 3.6 billion, and Rs 2.9 billion, respectively.Both the Industrial and Power Systems segments posted strong revenue growth of 21% and 28% YoY, respectively. However, profitability in the industrial segment was affected by the rise in copper prices and losses in new business areas that are still in the investment phase.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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